DAVOS, Switzerland, January 22. Azerbaijan and the European Bank for Reconstruction and Development (EBRD) have signed a loan agreement for the reconstruction of Ganja's water supply and sewerage system, Trend reports.
The loan agreement was signed by Azerbaijan's Minister of Economy Mikayil Jabbarov and EBRD First Vice President Jürgen Rigterink following the meeting of President of the Republic of Azerbaijan Ilham Aliyev with EBRD President Odile Renaud-Basso in Davos.
The bank committed 35 million euros to finance the upgrading of Ganja’s water management systems. The project will be co-financed by a grant of up to 5 million euros from the EU.
This loan is a follow-up to the memorandum of understanding that the parties signed at the 2024 United Nations Climate Change Conference in Baku (COP29) and the start of a comprehensive program that aims to ensure that all of Ganja is covered by efficient and sustainable water and wastewater services.
The proceeds will finance the construction of a water supply pipeline, wastewater collection pipes, and water reservoirs, as well as stormwater management systems and other supporting infrastructure. Upgrades to Ganja’s water infrastructure will help to improve its residents’ living standards by ensuring better access to clean water while building resilience towards the impact of climate change.
Ganja joined the EBRD’s flagship Green Cities program in 2020, and this is now the EBRD’s third investment project there. The EBRD’s first investment in Ganja was in 2022 when the bank committed to financing upgrades to the city’s waste management, and that was then followed by the financing of improvements to the city’s street-lighting infrastructure.